Symbio reports sharp drop in earnings and profit

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Symbio reports sharp drop in earnings and profit
Rene Sugo, Symbio

Sydney based voice communications software provider Symbio saw its first half of the 2023 financial year earnings before tax drop by a third, sliding to $11.6 million from $17.3 million for the same period in 2022.

The ASX listed company also reported a 34 per cent fall in net profit after tax to $4.4 million for the 1H23, with revenue up five per cent to $57.2 million, and flat recurring gross margin at $32.1 million.

Symbio reiteranted its full year 2023 earnings guidance of $26 to $30 million, and the company's board announced a fully franked dividend of 1.7 cents a share.

Co-founder and chief executive Rene Sugo said that company suffered a setback in the first half around inventory returns and customer delays, but that there were nevertheless positive organic growth in indicators in its business.

Sugo pointed to the Communications-Platform-as-a-Service (CPaaS) business which generated an overall six per cent growth in numbers.

Telecommunications-as-a-Service (TaaS) grew by 15 per cent and Symbio's Unified-Communications-as-a-Service grew 34 per cent measured in the number of seats.

Symbio has added a further seven customers in Singapore, with three onboarded in the last month, the company said.

In February this year, Symbio bought the Australian business of American unified communications provider West Technology Group, formerly known as Intrado, for $5 million in cash.

Sugo said that Symbio felt the global economic slowdown in the technology sector that it and its customers operate.

In respose to the slowing economy, Sugo said Symbio had implemented a hiring freeze, and reduced discretionary spending for travel, sales and marketing. 

Symbio is also reducing its capital expenditure by $2 million for the full year 2023, by deferring select product development and projects.


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